AC Milan are busy making a global spectacle of themselves as the season nears its end.
The once-great institution is being dressed up and packaged to tempt potential major investors — from Thailand and China, principally — in the hope that somebody and their multi-millions will be attracted by the rossoneri’s seven European Cups and undoubted prestige.
Milan, or at least a portion of the club, are for sale. The trouble is, they are a flawed product.
At the San Siro stadium, the home the club rent and share with co-tenants Inter Milan, the team have been making the wrong sort of spectacle of themselves, with performances that make a valuation of €1.2 billion (Dh4.1bn) — the tag the president Silvio Berlusconi is believed to have tied to the club — seem like anything but a snip.
The ambience is not helping, either.
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Milan’s latest home match featured a carefully rehearsed piece of choreography from fans, who lined up in the grandstand so that they formed the letters, in a human mosaic, of the word “Basta” – “Enough”.
The supporters have had enough of many things, but mainly of steady decline, of a squad who will spend a second successive season outside the Uefa Champions League, will not be playing European competitions at all for another campaign, and may not even finish in the top half of a Serie A they won four years ago.
Milan face Roma on Saturday looking to scrabble up from a lowly 11th place in the table.
It looks almost inevitable Berlusconi and his executives, headed by his daughter Barbara and his long-term vice-president Adriano Galliani, will soon have had enough of Filippo Inzaghi as head coach, too.
“He looks as if he has aged,” said Rino Gattuso, the former Milan midfielder and long-term teammate of Inzaghi’s in more successful Milan sides than the present one.
The role call of possible successors stretches wide, with Sevilla’s Unai Emery apparently admired and his case made all the stronger by his club’s handsome 3-0 win in the first leg of his team’s Europa League semi-final against Fiorentina on Thursday.
Porto’s Julen Lopetegui’s name has also been mentioned, as have those of Fiorentina’s Vicenzo Montella, and Roberto Donadoni, who has been done no favours by relegated Parma’s financial crisis, but has a factor that appeals to Berlusconi: as a player Donadoni was a Milan great.
Two club greats — Clarence Seedorf preceded Inzaghi — have been tried in the 18 months since the departure of Max Allegri, who has just guided Juventus to the Italian title.
But the task to infuse a listless, unbalanced squad with the gumption that characterised the Milan teams they played in has been beyond both Seedorf and Inzaghi.
Now finding a new, pedigree head coach — given the uncertainties over the club’s ownership and the limitations of a squad that patently needs overhauling — may be complicated.
A newcomer would be concerned to have a say in shaping a summer transfer strategy that needs to be more coherent than it has been over the past few market windows.
Of the incoming players of the past 12 months, only goalkeeper Diego Lopez, signed from Real Madrid, can be deemed an unqualified success, whereas striker Jeremy Menez has had his moments of skill but has also had moments he would rather forget.
Menez’s red card in the 3-1 defeat against Genoa, the fixture when the fans sent their Basta message, means he is suspended for the visit of his old club, Roma.
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Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
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